CCLME.ORG - 40 CFR PART 72—PERMITS REGULATION
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(continued)

§ 72.85 Permit reopenings.
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(a) The permitting authority shall reopen an Acid Rain permit for cause whenever:

(1) Any additional requirement under the Acid Rain Program becomes applicable to any affected unit governed by the permit;

(2) The permitting authority determines that the permit contains a material mistake or that an inaccurate statement was made in establishing the emissions standards or other terms or conditions of the permit, unless the mistake or statement is corrected in accordance with §72.83; or

(3) The permitting authority determines that the permit must be revised or revoked to assure compliance with Acid Rain Program requirements.

(b) In reopening an Acid Rain permit for cause, the permitting authority shall issue a draft permit changing the provisions, or adding the requirements, for which the reopening was necessary. The draft permit shall be subject to the requirements of subparts E, F, and G of this part.

(c) As provided in §§72.73(b)(1) and 72.74(c)(2), the permitting authority shall reopen an Acid Rain permit to incorporate nitrogen oxides requirements, consistent with part 76 of this chapter.

(d) Any reopening of an Acid Rain permit shall not affect the term of the permit.

[58 FR 3650, Jan. 11, 1993, as amended at 62 FR 55485, Oct. 24, 1997]

Subpart I—Compliance Certification
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§ 72.90 Annual compliance certification report.
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Link to an amendment published at 70 FR 25334, May 12, 2005.

(a) Applicability and deadline. For each calendar year in which a unit is subject to the Acid Rain emissions limitations, the designated representative of the source at which the unit is located shall submit to the Administrator, within 60 days after the end of the calendar year, an annual compliance certification report for the unit.

(b) Contents of report. The designated representative shall include in the annual compliance certification report under paragraph (a) of this section the following elements, in a format prescribed by the Administrator, concerning the unit and the calendar year covered by the report:

(1) Identification of the unit;

(2) For all Phase I units, the information in accordance with §§72.91(a) and 72.92(a) of this part;

(3) If the unit is governed by an approved Phase I extension plan, then the information in accordance with §72.93 of this part;

(4) At the designated representative's option, the total number of allowances to be deducted for the year, using the formula in §72.95 of this part, and the serial numbers of the allowances that are to be deducted;

(5) At the designated representative's option, for units that share a common stack and whose emissions of sulfur dioxide are not monitored separately or apportioned in accordance with part 75 of this chapter, the percentage of the total number of allowances under paragraph (b)(4) of this section for all such units that is to be deducted from each unit's compliance subaccount; and

(6) The compliance certification under paragraph (c) of this section.

(c) Annual compliance certification. In the annual compliance certification report under paragraph (a) of this section, the designated representative shall certify, based on reasonable inquiry of those persons with primary responsibility for operating the source and the affected units at the source in compliance with the Acid Rain Program, whether each affected unit for which the compliance certification is submitted was operated during the calendar year covered by the report in compliance with the requirements of the Acid Rain Program applicable to the unit, including:

(1) Whether the unit was operated in compliance with the applicable Acid Rain emissions limitations, including whether the unit held allowances, as of the allowance transfer deadline, in its compliance subaccount (after accounting for any allowance deductions under §73.34(c) of this chapter) not less than the unit's total sulfur dioxide emissions during the calendar year covered by the annual report;

(2) Whether the monitoring plan that governs the unit has been maintained to reflect the actual operation and monitoring of the unit and contains all information necessary to attribute monitored emissions to the unit;

(3) Whether all the emissions from the unit, or a group of units (including the unit) using a common stack, were monitored or accounted for through the missing data procedures and reported in the quarterly monitoring reports, including whether conditionally valid data, as defined in §72.2, were reported in the quarterly report. If conditionally valid data were reported, the owner or operator shall indicate whether the status of all conditionally valid data has been resolved and all necessary quarterly report resubmissions have been made.

(4) Whether the facts that form the basis for certification of each monitor at the unit or a group of units (including the unit) using a common stack or for using an Acid Rain Program excepted monitoring method or approved alternative monitoring method, if any, has changed; and

(5) If a change is required to be reported under paragraph (c)(4) of this section, specify the nature of the change, the reason for the change, when the change occurred, and how the unit's compliance status was determined subsequent to the change, including what method was used to determine emissions when a change mandated the need for monitor recertification.

[58 FR 3650, Jan. 11, 1993, as amended at 64 FR 28588, May 26, 1999]

§ 72.91 Phase I unit adjusted utilization.
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(a) Annual compliance certification report. The designated representative for each Phase I unit shall include in the annual compliance certification report the unit's adjusted utilization for the calendar year in Phase I covered by the report, calculated as follows:

Adjusted utilization = baseline - actual utilization - plan reductions + compensating generation provided to other units

where:

(1) “Baseline” is as defined in §72.2 of this part.

(2) “Actual utilization” is the actual annual heat input (in mmBtu) of the unit for the calendar year determined in accordance with part 75 of this chapter.

(3) “Plan reductions” are the reductions in actual utilization, for the calendar year, below the baseline that are accounted for by an approved reduced utilization plan. The designated representative for the unit shall calculate the “plan reductions” (in mmBtu) using the following formula and converting all values in Kwh to mmBtu using the actual annual average heat rate (Btu/Kwh) of the unit (determined in accordance with part 75 of this chapter) before the employment of any improved unit efficiency measures under an approved plan:

Plan reductions = reduction from energy conservation + reduction from improved unit efficiency improvements + shifts to designated sulfur-free generators + shifts to designated compensating units

where:

(i) “Reduction from energy conservation” is a good faith estimate of the expected kilowatt hour savings during the calendar year from all conservation measures under the reduced utilization plan and the corresponding reduction in heat input (in mmBtu) resulting from those savings. The verified amount of such reduction shall be submitted in accordance with paragraph (b) of this section.

(ii) “Reduction from improved unit efficiency” is a good faith estimate of the expected improvement in heat rate during the calendar year and the corresponding reduction in heat input (in mmBtu) at the Phase I unit as a result of all improved unit efficiency measures under the reduced utilization plan. The verified amount of such reduction shall be submitted in accordance with paragraph (b) of this section.

(iii) “Shifts to designated sulfur-free generators” is the reduction in utilization (in mmBtu), for the calendar year, that is accounted for by all sulfur-free generators designated under the reduced utilization plan in effect for the calendar year. This term equals the sum, for all such generators, of the “shift to sulfur-free generator.” “Shift to sulfur-free generator” shall equal the amount, to the extent documented under paragraph (a)(6) of this section, calculated for each generator using the following formula:

Shift to sulfur-free generator = actual sulfur-free utilization - [(average 1985–87 sulfur-free annual utilization) (1 + percentage change in dispatch system sales)]

where:

(A) “Actual sulfur-free utilization” is the actual annual generation (in Kwh) of the designated sulfur-free generator for the calendar year converted to mmBtus.

(B) “Average 1985–87 sulfur-free utilization” is the sum of annual generation (in Kwh) for 1985, 1986, and 1987 for the designated sulfur-free generator, divided by three and converted to mmBtus.

(C) “Percentage change in dispatch system sales” is calculated as follows:



where:

S = dispatch system sales (in Kwh)

c = calendar year

y = 1985, 1986, or 1987

If the result of the formula for percentage change in dispatch system sales is less than or equal to zero, then percentage change in dispatch system sales shall be treated as zero only for purposes of paragraph (a)(3)(iii) of this section.


(D) If the result of the formula for “shift to sulfur-free generator” is less than or equal to zero, then “shift to sulfur-free generator” is zero.

(iv) “Shifts to designated compensating units” is the reduction in utilization (in mmBtu) for the calendar year that is accounted for by increased generation at compensating units designated under the reduced utilization plan in effect for the calendar year. This term equals the heat rate, under paragraph (a)(3) of this section, of the unit reducing utilization multiplied by the sum, for all such compensating units, of the “shift to compensating unit” for each compensating unit. “Shift to compensating unit” shall equal the amount of compensating generation (in Kwh), to the extent documented under paragraph (a)(6) of this section, that the designated representatives of the unit reducing utilization and the compensating unit have certified (in their respective annual compliance certification reports) as the amount that will be converted to mmBtus and used, in accordance with paragraph (a)(4) of this section, in calculating the adjusted utilization for the compensating unit.

(4) “Compensating generation provided to other units” is the total amount of utilization (in mmBtu) necessary to provide the generation (if any) that was shifted to the unit as a designated compensating unit under any other reduced utilization plans that were in effect for the unit and for the calendar year. This term equals the heat rate, under paragraph (a)(3) of this section, of such unit multiplied by the sum of each “shift to compensating unit” that is attributed to the unit in the annual compliance certification reports submitted by the Phase I units under such other plans and that is certified under paragraph (a)(3)(iv) of this section.

(5) Notwithstanding paragraphs (a)(3) (i), (ii), and (iii) of this section, where two or more Phase I units include in “plan reductions”, in their annual compliance certification reports for the calendar year, expected kilowatt hour savings or reduction in heat rate from the same specific conservation or improved unit efficiency measures or increased utilization of the same sulfur-free generator:

(i) The designated representatives of all such units shall submit with their annual reports a certification signed by all such designated representatives. The certification shall apportion the total kilowatt hour savings, reduction in heat rate, or increased utilization among such units.

(ii) Each designated representative shall include in the annual report only the respective unit's share of the total kilowatt hour savings, reduction in heat rate, or increased utilization, in accordance with the certification under paragraph (a)(5)(i) of this section.

(6)(i) Where a unit includes in “plan reductions” under paragraph (a)(3) of this section the increase in utilization of any sulfur-free generator, the designated representative of the unit shall submit, with the annual compliance certification report, documentation demonstrating that an amount of electrical energy at least equal to the “shift to sulfur-free generator” attributed to the sulfur-free generator in the annual report was actually acquired by the unit's dispatch system from the sulfur-free generator.

(ii) Where a unit includes in “plan reductions” under paragraph (a)(3) of this section utilization of any compensating unit, the designated representative of the unit shall submit with the annual compliance certification report, documentation demonstrating that an amount of electrical energy at least equal to the “shift to compensating unit” attributed to the compensating unit in the annual report was actually acquired by the unit's dispatch system from the compensating unit.

(7) Notwithstanding paragraphs (a)(3) (i), (ii), (iii), and (iv), (a)(4), and (a)(5) of this section, “plan reductions” minus “compensating generation provided to other units” shall not exceed “baseline” minus “actual utilization.”

(b) Confirmation report. (1) If a unit's annual compliance certification report estimates any expected kilowatt hour savings or improvement in heat rate from energy conservation or improved unit efficiency measures under a reduced utilization plan, the designated representative shall submit, by July 1 of the year in which the annual report was submitted, a confirmation report. The Administrator may grant, for good cause shown, an extension of the time to file the confirmation report. The confirmation report shall include the following elements in a format prescribed by the Administrator:

(i) The verified kilowatt hour savings from each such energy conservation measure and the verified corresponding reduction in the unit's heat input resulting from each measure during the calendar year covered by the annual report. For purposes of this paragraph (b), all values in Kwh shall be converted to mmBtu using the actual annual heat rate (Btu/Kwh) of the unit (determined in accordance with part 75 of this chapter) before the employment of any improved unit efficiency measures under an approved reduced utilization plan.

(ii) The verified reduction in the heat rate achieved by each improved unit efficiency measure and the verified corresponding reduction in the unit's heat input resulting from such measure.

(iii) For each figure under paragraphs (b)(1) (i) and (ii) of this section:

(A) Documentation (which may follow the EPA Conservation Verification Protocol) verifying specified figures to the satisfaction of the Administrator; or

(B) Certification, by a State utility regulatory authority that has ratemaking jurisdiction over the utility system that paid for the measures in accordance with §72.43(b)(2) of this part and over rates reflecting any of the amount paid for such measures, or that meets the criteria in §73.82(c)(1) (i) and (ii) of this chapter, that such authority verified specified figures related to demand-side measures; and

(C) Certification, by a utility regulatory authority that has ratemaking jurisdiction over the utility system that paid for the measures in accordance with §72.43(b)(2) of this part and over rates reflecting any of the amount paid for such measures, that such authority verified specified figures related to supply-side measures, except measures relating to generation efficiency.

(iv) The sum of the verified reductions in a unit's heat input from all measures implemented at the unit to reduce the unit's heat rate (whether the measures are treated as supply-side measures or improved unit efficiency measures) shall not exceed the generation (in kwh) attributed to the unit for the calendar year times the difference between the unit's heat rate for 1987 and the unit's heat rate for the calendar year.

(2) Notwithstanding paragraph (b)(1)(i) of this section, where two or more Phase I units include in the confirmation report the verified kilowatt hour savings or reduction in heat rate from the same specific conservation or improved unit efficiency measures:

(i) The designated representatives of all such units shall submit with their confirmation reports a certification signed by all such designated representatives. The certification shall apportion the total kilowatt hour savings or reduction in heat rate among such units.

(ii) Each designated representative shall include in the confirmation report only the respective unit's share of the total savings or reduction in heat rate in accordance with the certification under paragraph (b)(2)(i) of this section.

(3) If the total, included in the confirmation report, of the amounts of verified reduction in the unit's heat input from energy conservation and improved unit efficiency measures equals the total estimated in the unit's annual compliance certification report from such measures for the calendar year, then the designated representatives shall include in the confirmation report a statement indicating that is true.

(4) If the total, included in the confirmation report, of the amounts of verified reduction in the unit's heat input from energy conservation and improved unit efficiency measures is greater than the total estimated in the unit's annual compliance certification report from such measures for the calendar year, then the designated representative shall include in the confirmation report the number of allowances to be credited to the unit's compliance subaccount calculated using the following formula:

Allowances credited = (verified heat input reduction-estimated heat input reduction) × emissions rate · 2000 lbs/ton

where:

(i) “Verified heat input reduction” is the total of the amounts of verified reduction in the unit's heat input (in mmBtu) from energy conservation and improved unit efficiency measures included in the confirmation report.

(ii) “Estimated heat input reduction” is the total of the amounts of reduction in the unit's heat input (in mmBtu) accounted for by energy conservation and improved efficiency measures as estimated in the unit's annual compliance certification report for the calendar year.

(iii) “Emissions rate” is the “emissions rate” under §72.92(c)(2)(v) of this part.

(iv) The allowances credited shall not exceed the total number of allowances deducted from the unit's compliance subaccount for the calendar year in accordance with §§72.92(a) and (c) and 73.35(b) of this chapter.

(5) If the total, included in the confirmation report, of the amount of verified reduction in the unit's heat input for energy conservation and improved unit efficiency measures is less than the total estimated in the unit's annual compliance certification report for such measures for the calendar year, then the designated representative shall include in the confirmation report the number of allowances to be deducted from the unit's compliance subaccount calculated in accordance with this paragraph (b)(5).

(i) If any allowances were deducted from the unit's compliance subaccount for the calendar year in accordance with §§72.92(a) and (c) and 73.35(b) of this chapter, then the number of allowances to be deducted under paragraph (b)(5) of this section equals the absolute value of the result of the formula for allowances credited under paragraph (b)(4) of this section (excluding paragraph (b)(4)(iv) of this section).

(ii) If no allowances were deducted from the unit's compliance subaccount for the calendar year in accordance with §§72.92(a) and (c) and 73.35(b) of this chapter:

(A) The designated representative shall recalculate the unit's adjusted utilization in accordance with paragraph (a) of this section, replacing the amounts for reduction from energy conservation and reduction from improved unit efficiency by the amount for verified heat input reduction. “Verified heat input reduction” is the total of the amounts of verified reduction in the unit's heat input (in mmBtu) from energy conservation and improved unit efficiency measures included in the confirmation report.

(B) After recalculating the adjusted utilization under paragraph (b)(5)(ii)(A) of this section for all Phase I units that are in the unit's dispatch system and to which paragraph (b)(5) of this section is applicable, the designated representative shall calculate the number of allowances to be surrendered in accordance with §72.92(c)(2) using the recalculated adjusted utilizations of such Phase I units.

(C) The allowances to be deducted under paragraph (b)(5) of this section shall equal the amount under paragraph (b)(5)(ii)(B) of this section, provided that if the amount calculated under this paragraph (b)(5)(ii)(C) is equal to or less than zero, then the amount of allowances to be deducted is zero.

(6) The Administrator will determine the amount of allowances that would have been included in the unit's compliance subaccount and the amount of excess emissions of sulfur dioxide that would have resulted if the deductions made under §73.35(b) of this chapter had been based on the verified, rather than the estimated, reduction in the unit's heat input from energy conservation and improved unit efficiency measures.

(7) The Administrator will determine whether the amount of excess emissions of sulfur dioxide under paragraph (b)(6) of this section differs from the amount of excess emissions determined under §73.35(b) of this chapter based on the annual compliance certification report. If the amounts differ, the Administrator will determine: The number of allowances that should be deducted to offset any increase in excess emissions or returned to account for any decrease in excess emissions; and the amount of excess emissions penalty (excluding interest) that should be paid or returned to account for the change in excess emissions. The Administrator will deduct immediately from the unit's compliance subaccount the amount of allowances that he or she determines is necessary to offset any increase in excess emissions or will return immediately to the unit's compliance subaccount the amount of allowances that he or she determines is necessary to account for any decrease in excess emissions. The designated representative may identify the serial numbers of the allowances to be deducted or returned. In the absence of such identification, the deduction will be on a first-in, first-out basis under §73.35(b)(2) of this chapter and the return will be at the Administrator's discretion.

(8) If the designated representative of a unit fails to submit on a timely basis a confirmation report (in accordance with paragraph (b) of this section) with regard to the estimate of expected kilowatt hour savings or improvement in heat rate from any energy conservation or improved unit efficiency measure under the reduced utilization plan, then the Administrator will reject such estimate and correct it to equal zero in the unit's annual compliance certification report that includes that estimate. The Administrator will deduct immediately, on a first-in, first-out basis under §73.35(c)(2) of this chapter, the amount of allowances that he or she determines is necessary to offset any increase in excess emissions of sulfur dioxide that results from the correction and require the owners and operators to pay an excess emission penalty in accordance with part 77 of this chapter.

[58 FR 3650, Jan. 11, 1993, as amended at 58 FR 40747, July 30, 1993; 59 FR 60231, Nov. 22, 1994; 60 FR 18470, Apr. 11, 1995; 62 FR 55485, Oct. 24, 1997]

§ 72.92 Phase I unit allowance surrender.
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(a) Annual compliance certification report. If a Phase I unit's adjusted utilization for the calendar year in Phase I under §72.91(a) is greater than zero, then the designated representative shall include in the annual compliance certification report the number of allowances that shall be surrendered for adjusted utilization using the formula in paragraph (c) of this section and the calculations that were performed to obtain that number.

(b) Other submissions. (1) [Reserved]

(2)(i) If any Phase I unit in a dispatch system is governed during the calendar year by an approved reduced utilization plan relying on sulfur-free generation, then the designated representatives of all affected units in such dispatch system shall jointly submit, within 60 days of the end of the calendar year, a dispatch system data report that includes the following elements in a format prescribed by the Administrator:

(A) The name of the dispatch system as reported under §72.33;

(B) The calculation of “percentage change in dispatch system sales” under §72.91(a)(3)(iii)(C);

(C) A certification that each designated representative will use this figure, as appropriate, in its annual compliance certification report and will submit upon request the data supporting the calculation; and

(D) The signatures of all the designated representatives.

(ii) If any Phase I unit in a dispatch system has adjusted utilization greater than zero for the calendar year, then the designated representatives of all Phase I units in such dispatch system shall jointly submit, within 60 days of the end of the calendar year, a dispatch system data report that includes the following elements in a format prescribed by the Administrator:

(A) The name of the dispatch system as reported under §72.33;

(B) The calculation of “percentage change in dispatch system sales” under §72.91(a)(3)(iii)(C);

(C) The calculation of “dispatch system adjusted utilization” under paragraph (c)(2)(i) of this section;

(D) The calculation of “dispatch system aggregate baseline” under paragraph (c)(2)(ii) of this section;

(E) The calculation of “fraction of generation within dispatch system” under paragraph (c)(2)(v)(A) of this section;

(F) The calculation of “dispatch system emissions rate” under paragraph (c)(2)(v)(B) of this section;

(G) The calculation of “fraction of generation from non-utility generators” under paragraph (c)(2)(v)(C) of this section;

(H) The calculation of “non-utility generator average emissions rate “ under paragraph (c)(2)(v)(F) of this section;

(I) A certification that each designated representative will use these figures, as appropriate, in its annual compliance certification report and will submit upon request the data supporting these calculations; and

(J) The signatures of all the designated representatives.

(c) Allowance surrender formula. (1) As provided under the allowance surrender formula in paragraph (c)(2) of this section:

(i) Allowances are not surrendered for deduction for the portion of adjusted utilization accounted for by:

(A) Shifts in generation from the unit to other Phase I units;

(B) A dispatch-system-wide sales decline;

(C) Plan reductions under a reduced utilization plan as calculated under §72.91; and

(D) Foreign generation.

(ii) Allowances are surrendered for deduction for the portion of adjusted utilization that is not accounted for under paragraph (c)(1)(i) of this section.

(2) The designated representative shall surrender for deduction the number of allowances calculated using the following formula:

Allowances surrendered = [dispatch system adjusted utilization + (dispatch system aggregate baseline × percentage change in dispatch system sales)] × unit's share × emissions rate · 2000 lbs/ton.

If the result of the formula for “allowances surrendered” is less than or equal to zero, then no allowances are surrendered.

(i) Calculating dispatch system adjusted utilization. “Dispatch system adjusted utilization” (in mmBtu) is the sum of the adjusted utilization under §72.91(a) for all Phase I units in the dispatch system. If “dispatch system adjusted utilization” is less than or equal to zero, then no allowances are surrendered by any unit in that dispatch system.

(ii) Calculating dispatch system aggregate baseline. “Dispatch system aggregate baseline” is the sum of the baselines (as defined in §72.2 of this chapter) for all Phase I units in the dispatch system.

(iii) Calculating percentage change in dispatch system sales. “Percentage change in dispatch system sales” is the “percentage change in dispatch system sales” under §72.91 (a)(3)(iii)(C); provided that if result of the formula in §72.91(a)(3)(iii)(C) is greater than or equal to zero, the value shall be treated as zero only for purposes of paragraph (c)(2) of this section.

(iv) Calculating unit's share. “Unit's share” is the unit's adjusted utilization divided by the sum of the adjusted utilization for all Phase I units within the dispatch system that have adjusted utilization of greater than zero and is calculated as follows:


where:

(A) Uunit = the unit's adjusted utilization for the calendar year;

(B) Ui = the adjusted utilization of a Phase I unit in the dispatch system for the calendar year; and

(C) m = all Phase I units in the dispatch system having an adjusted utilization greater than 0 for the calendar year.

(v) Calculating emissions rate. “Emissions rate” (in lbs/mmBtu) is the weighted average emissions rate for sulfur dioxide of all units and generators, within and outside the dispatch system, that contributed to the dispatch system's electrical output for the year, calculated as follows:

Emissions rate = [fraction of generation within dispatch system × dispatch system emissions rate] + [fraction of generation from non-utility generators × non-utility generator average emissions rate] + [fraction of generation outside dispatch system × fraction of non-Phase 1 and non-foreign generation in NERC region × NERC region emissions rate]

where:

(A) “Fraction of generation within dispatch system” is the fraction of the dispatch system's total sales accounted for by generation from units and generators within the dispatch system, other than generation from non-utility generators. This term equals the total generation (in Kwh) by all units and generators within the dispatch system for the calendar year minus the total non-utility generation from non-utility generators within the dispatch system for the calendar year and divided by the total sales (in Kwh) by the dispatch system for the calendar year.

(B) Dispatch system emissions rate” is the weighted average rate (in lbs/mmBtu) for the dispatch system calculated as follows:

Dispatch system emissions rate =



where:

gi = the difference between a Phase II unit's actual utilization for the calendar year and that Phase II unit's baseline. If that difference is less than or equal to zero, then the difference shall be treated as zero only for purposes of paragraph (c)(2)(v) of this section and that unit will be excluded from the calculation of dispatch system emissions rate. Notwithstanding the prior sentence, if the actual utilization of each Phase II unit for the year is equal to or less than the baseline, then gi shall equal a Phase II unit's actual utilization for the year. Notwithstanding any provision in this paragraph (c)(2)(v)(B) to the contrary, if the actual utilization of each Phase II unit in the dispatch system is zero or there are no Phase II units in the dispatch system, then the dispatch system emissions rate shall equal the fraction of non-Phase I and non-foreign generation in the NERC region multiplied by the NERC region emissions rate.

ri = a Phase II unit's emissions rate (in lbs/mmBtu), determined in accordance with part 75 of this chapter, for the calendar year.

k = number of Phase II units in the dispatch system.


(C) “Fraction of generation from non-utility generators” is the fraction of the dispatch system's total sales accounted for by generation acquired from non-utility generators within or outside the dispatch system. This term equals the total non-utility generation from non-utility generators (within or outside the dispatch system) for the calendar year divided by the total sales (in Kwh) by the dispatch system for the calendar year.

(D) “Non-utility generator” is a power production facility (within or outside the dispatch system) that is not an affected unit or a sulfur-free generator and that has a “non-utility generator emissions rate” for the calendar year under paragraph (c)(2)(v)(F) of this section.

(E) “Non-utility generation” is the generation (in Kwh) that the dispatch system acquired from a non-utility generator during the calendar year as required by Federal or State law or an order of a utility regulatory authority or under a contract awarded as the result of a power purchase solicitation required by Federal or State law or an order of a utility regulatory authority.

(F) “Non-utility generator average emissions rate” is the weighted average rate (in lbs/mmBtu) for the non-utility generators calculated as follows:

Non-utility generator average emissions rate =



where:

Ni = non-utility generation from a non-utility generator;

Ri = non-utility generator emissions rate for the calendar year for a non-utility generator, which shall equal the most stringent federally enforceable or State enforceable SO2 emissions limitation applicable for the calendar year to such power production facility, as determined in accordance with paragraphs (c)(2)(v)(F) (1), (2), and (3) of this section; and

n = number of non-utility generators from which the dispatch system acquired non-utility generation. If n equals zero, then the non-utility generator average emissions rate shall be treated as zero only for purposes of paragraph (c)(2)(v) of this section.


(1) For purposes of determining the most stringent emissions limitation, applicable emissions limitations shall be converted to lbs/mmBtu in accordance with appendix B of this part. If an applicable emissions limitation cannot be converted to a unit-specific limitation in lbs/mmBtu under appendix B of this part, then the limitation shall not be used in determining the most stringent emissions limitation. Where the power production facility is subject to different emissions limitations depending on the type of fuel it uses during the calendar year, the most stringent emissions limitation shall be determined separately with regard to each type of fuel and the resulting limitation with the highest amount of lbs/mmBtu shall be treated as the facility's most stringent federally enforceable or State enforceable emissions limitation.

(2) If there is no applicable emissions limitation that can be used in determining the most stringent emissions limitation under paragraph (c)(2)(v)(F)(1) of this section, then the power production facility has no non-utility generator emissions rate for purposes of paragraphs (c)(2)(v) (D) and (F) of this section and the generation from the facility shall be treated, for purposes of this paragraph (c)(2)(v) as generation from units and generators within the dispatch system if the facility is within the dispatch system or as generation from units and generators outside the dispatch system if the facility is outside the dispatch system.

(3) Notwithstanding paragraphs (c)(2)(v)(F) (1) and (2) of this section, if the power production facility is authorized under Federal or State law to use only natural gas as fuel, then the most stringent emissions limitation for the facility for the calendar year shall be deemed to be 0.0006 lbs/mmBtu.

(G) “Fraction of generation outside dispatch system” = 1-fraction of generation within dispatch system-fraction of generation from non-utility generators.

(H) “Fraction of non-Phase I and non-foreign generation in NERC region” is the portion of the NERC region's total sales generated by units and generators other than Phase I units or foreign sources in the unit's NERC region in 1985, as set forth in table 1 of this section.

(I) “NERC region emissions rate” is the weighted average emission rate (in lbs/mmBtu) for the unit's NERC region in 1985, as set forth in table 1 of this section.


Table 1_NERC Region Generation and Emissions Rate in 1985
------------------------------------------------------------------------
Fraction
of non- NERC
phase I weighted
and non- average
NERC region foreign emissions
generation rate (lbs/
in NERC mmBtu)
region
------------------------------------------------------------------------
WSCC............................................. 0.847 0.466
SPP.............................................. 0.948 0.647
SERC............................................. 0.749 1.315
NPCC............................................. 0.423 1.058
MAPP............................................. 0.725 1.171
MAIN............................................. 0.682 1.495
MAAC............................................. 0.750 1.599
ERCOT............................................ 1.000 0.491
ECAR............................................. 0.549 1.564
------------------------------------------------------------------------


[58 FR 3650, Jan. 11, 1993, as amended at 58 FR 40747, July 30, 1993; 60 FR 18470, Apr. 11, 1995]

§ 72.93 Units with Phase I extension plans.
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Annual compliance certification report. The designated representative for a control unit governed by a Phase I extension plan shall include in the unit's annual compliance certification report for calendar year 1997, the start-up test results upon which the vendor is released from liability under the vendor certification of guaranteed sulfur dioxide removal efficiency under §72.42(c)(12).

§ 72.94 Units with repowering extension plans.
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(a) Design and engineering and contract requirements. No later than January 1, 2000, the designated representative of a unit governed by an approved repowering plan shall submit to the Administrator and the permitting authority:

(1) Satisfactory documentation of a preliminary design and engineering effort.

(2) A binding letter agreement for the executed and binding contract (or for each in a series of executed and binding contracts) for the majority of the equipment to repower the unit using the technology conditionally approved by the Administrator under §72.44(d)(3).

(3) The letter agreement under paragraph (a)(2) of this section shall be signed and dated by each party and specify:

(i) The parties to the contract;

(ii) The date each party executed the contract;

(iii) The unit to which the contract applies;

(iv) A brief list identifying each provision of the contract;

(v) Any dates to which the parties agree, including construction completion date;

(vi) The total dollar amount of the contract; and

(vii) A statement that a copy of the contract is on site at the source and will be submitted upon written request of the Administrator or the permitting authority.

(b) Removal from operation to repower. The designated representative of a unit governed by an approved repowering plan shall notify the Administrator in writing at least 60 days in advance of the date on which the existing unit is to be removed from operation so that the qualified repowering technology can be installed, or is to be replaced by another unit with the qualified repowering technology, in accordance with the plan.

(c) Commencement of operation. Not later than 60 days after the unit repowered under an approved repowering plan commences operation at full load, the designated representative of the unit shall submit a report comparing the actual hourly emissions and percent removal of each pollutant controlled at the unit to the actual hourly emissions and percent removal at the existing unit under the plan prior to repowering, determined in accordance with part 75 of this chapter.

(d) Decision to terminate. If at any time before the end of the repowering extension the owners and operators decide to terminate good faith efforts to design, construct, and test the qualified repowering technology on the unit to be repowered under an approved repowering plan, then the designated representative shall submit a notice to the Administrator by the earlier of the end of the repowering extension or a date within 30 days of such decision, stating the date on which the decision was made.

§ 72.95 Allowance deduction formula.
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Link to an amendment published at 70 FR 25334, May 12, 2005.

The following formula shall be used to determine the total number of allowances to be deducted for the calendar year from the allowances held in an affected unit's compliance subaccount as of the allowance transfer deadline applicable to that year:

Total allowances deducted = Tons emitted + Allowances surrendered for underutilization + Allowances deducted for Phase I extensions + Allowances deducted for substitution or compensating units

where:

(a) “Tons emitted” is the total tons of sulfur dioxide emitted by the unit during the calendar year, as reported in accordance with part 75 of this chapter.

(b) “Allowances surrendered for underutilization” is the total number of allowances calculated in accordance with §72.92 (a) and (c).

(c) “Allowances deducted for Phase I extensions” is the total number of allowances calculated in accordance with §72.42(f)(1)(i).

(d) “Allowances deducted for substitution or compensating units” is the total number of allowances calculated in accordance with the surrender requirements specified under §72.41(d)(3) or (e)(1)(iii)(B) or §72.43(d)(2).

[58 FR 3650, Jan. 11, 1993, as amended at 62 FR 55485, Oct. 24, 1997]

§ 72.96 Administrator's action on compliance certifications.
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Link to an amendment published at 70 FR 25334, May 12, 2005.

(a) The Administrator may review, and conduct independent audits concerning, any compliance certification and any other submission under the Acid Rain Program and make appropriate adjustments of the information in the compliance certifications and other submissions.

(b) The Administrator may deduct allowances from or return allowances to a unit's Allowance Tracking System account in accordance with part 73 of this chapter based on the information in the compliance certifications and other submissions, as adjusted.

Appendix A to Part 72—Methodology for Annualization of Emissions Limits
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For the purposes of the Acid Rain Program, 1985 emissions limits must be expressed in pounds of SO2 per million British Thermal Unit of heat input (lb/mmBtu) and expressed on an annual basis.

Annualization factors are used to develop annual equivalent SO2 limits as required by section 402(18) of the CAA. Many emission limits are enforced on a shorter term basis (or averaging period) than annually. Because of the variability of sulfur in coal and, in some cases, scrubber performance, meeting a particular limit with an averaging period of less than a year and at a specified statutory emissions level would require a lower annual average SO2 emission rate (or annual equivalent SO2 limit) than would the shorter term statutory limit. EPA has selected a compliance level of one exceedance per 10 years. For example, an SO2 emission limit of 1.2 lbs/MMBtu, enforced for a scrubbed unit over a 7-day averaging period, would result in an annualized SO2 emission limit of 1.16 lbs/MMBtu. In general, the shorter the averaging period, the lower the annual equivalent would be. Thus, the annualization of limits is established by multiplying each federally enforceable limit by an annualization factor that is determined by the averaging period and whether or not it's a scrubbed unit.


Table A-1_SO2Emission Averaging Periods and Annualization Factors
------------------------------------------------------------------------
Annualization factor
---------------------
Definition Scrubbed Unscrubbed
---------------------
Unit Unit
------------------------------------------------------------------------
Oil/gas unit...................................... 1.00 1.00
<=1 day........................................ 0.93 0.89
1 week............................................ 0.97 0.92
30 days........................................... 1.00 0.96
90 days........................................... 1.00 1.00
1 year............................................ 1.00 1.00
Not specified..................................... 0.93 0.89
At all times...................................... 0.93 0.89
Coal unit: No Federal limit or limit unknown...... 1.00 1.00
------------------------------------------------------------------------


Appendix B to Part 72—Methodology for Conversion of Emissions Limits
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For the purposes of the Acid Rain Program, all emissions limits must be expressed in pounds of SO2 per million British Thermal Unit of heat input (lb/mmBtu).

The factor for converting pounds of sulfur to pounds of SO2 is based on the molecular weights of sulfur (32) and SO2 (64). Limits expressed as percentage of sulfur or parts per million (ppm) depend on the energy content of the fuel and thus may vary, depending on several factors such as fuel heat content and atmospheric conditions. Generic conversions for these limits are based on the assumed average energy contents listed in table A–2. In addition, limits in ppm vary with boiler operation (e.g., load and excess air); generic conversions for these limits assume, conservatively, very low excess air. The remaining factors are based on site-specific heat rates and capacities to develop conversions for Btu per hour. Standard conversion factors for residual oil are 42 gal/bbl and 7.88 lbs/gal.


Table B-1_Conversion Factors
[Emission limits converted to lbs SO2/MMBtu by multiplying as below]
----------------------------------------------------------------------------------------------------------------
Plant fuel type
-------------------------------------------------
Unit measurement Bituminous Subbituminous Lignite
coal coal coal Oil
----------------------------------------------------------------------------------------------------------------
Lbs sulfur/ MMBtu............................................. 2.0 2.0 2.0 2.0
% sulfur in fuel.............................................. 1.66 2.22 2.86 1.07
Ppm SO2....................................................... 0.00287 0.00384 ....... 0.00167
Ppm sulfur in fuel............................................ ........... ............. ....... 0.00334
Tons SO2/hour................................................. 2,000,000/
(HEATRATE*S
UMNDCAP*cap
acity
factor) \1\
Lbs SO2/hour.................................................. 1,000/
(HEATRATE*S
UMNDCAP*cap
acity
factor) \1\
----------------------------------------------------------------------------------------------------------------
\1\ In these cases, if the limit was specified as the ``site'' limit, the summer net dependable capability for
the entire plant is used; otherwise, the summer net dependable capability for the unit is used. For units
listed in the NADB, ``HEATRATE'' shall be that listed in the NADB under that field and ``SUMNDCAP'' shall be
that listed in the NADB under that field. For units not listed in the NADB, ``HEATRATE'' is the generator net
full load heat rate reported on Form EIA-860 and ``SUMNDCAP'' is the summer net dependable capability of the
generator (in MWe) as reported on Form EIA-860.




Table B-2_Assumed Average Energy Contents
------------------------------------------------------------------------
Fuel type Average heat content
------------------------------------------------------------------------
Bituminous Coal........................ 24 MMBtu/ton.
Subbituminous Coal..................... 18 MMBtu/ton.
Lignite Coal........................... 14 MMBtu/ton.
Residual Oil........................... 6.2 MMBtu/bbl.
------------------------------------------------------------------------


Appendix C to Part 72—Actual 1985 Yearly SO2 Emissions Calculation
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The equation used to calculate the yearly SO2 emissions (SO2) is as follows:

SO2 = (coal SO2 emissions) + (oil SO2 emissions) (in tons)

If gas is the only fuel, gas emissions are defaulted to 0.

Each fuel type SO2 emissions is calculated on a yearly basis, using the equation:

fuel SO2 emissions (in tons) = (yrly wtd. av. fuel sulfur %) × (AP–42 fact.) × (1-scrb. effic. %/100) × (units conver. fact.) × (yearly fuel burned) (continued)